Economics 9708 · AS & A Level · Oligopoly

Oligopoly — practice question

Within a banking system, every bank holds 20% of deposits in cash. A single bank is given a fresh cash deposit of $200. There are no later net cash withdrawals from the banking system. What is the overall rise in deposits in the system?

  • A$20
  • B$200
  • C$800
  • D$1000

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